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<br />. <br /> <br />. <br /> <br />. <br />. <br /> <br />. <br />. <br /> <br />ARTICLE VIII <br />PROGRAM COVENANTS AND OTHER COVENANTS OF THE AGENCY <br /> <br />801. Program Covenants. (A) The Agency shall from time to time, with <br />all practical dispatch and in a sound and economical manner consistent in all <br />respects with the Act and with the provis ions of th is Resol ution and the <br />Supplemental Resolution, use and apply the proceeds of the Bonds which are <br />depos ited in a Mortgage Loan Purchase Account to purchase Mortgage Loans to <br />carry out the Residential Mortgage Financing Program, and shall do all such <br />acts and things necessary to receive and collect or cause to be received and <br />collected Revenues, as may be consistent with sound banking practices and <br />principles and shall diligently enforce, and take all steps, actions and <br />proceedings reasonably necessary in the judgment of the Agency for the <br />enforcement of all terms, covenants and conditions of Mortgage Loans. <br /> <br />(B) No amounts which have been deposited in a Mortgage Loan <br />Purchase Account shall be used to purchase any Mortgage Loan unless either: <br />(i)(a) the effective yield to the Agency on the Mortgage Loan to be so <br />purchased equals or exceeds the interest rate for Mortgage Loans as set forth <br />in the Mortgage Loan Purchase Agreement, and (b) the Mortgage Loan to be so <br />purchased shall have a final maturity date no later than the final Principal <br />Installment Date of the Bonds issued to establish the Mortgage Loan Purchase <br />Account from wh ich the Mortgage Loan is to be purchased, or (i i) there is <br />del ivered to the Trus tee an appropriate Certi fi cate of Pledged Revenues, <br />together with the Requisition for the purchase of such a Mortgage Loan. <br /> <br />(C) The Trustee is hereby authorized and directed to disburse <br />funds to purchase Mortgage Loans: <br /> <br />(1) Upon receipt of a Statement of Representation and <br />Warranty from the Qualified Mortgage Lender that all documents relating to the <br />Mortgage Loan, as described in subsections (D) and (E) of this Section B01, <br />meet the requirements of this Resolution, that the applicable escrow is ready <br />to close and, as evidenced by such Statement, the Mortgage Loan meets the <br />requirements of subsection (B) of this Section 801. The Qualified Mortgage <br />Lender shall include in such Statement the representations and warranties <br />required by the Mortgage Loan Purchase Agreement and the Qualified Mortgage <br />Lender shall restate its agreement to repurchase such Mortgage Loan as <br />provided therein. The Qualified Mortgage Lender shall also represent that the <br />title company is prepared to issue its Mortgagee title insurance policy. <br />Finally, the Qualified Mortgage Lender shall request the Trustee to disburse <br />funds to the title company to purchase the Mortgage Loan upon receipt by the <br />Trustee of the appropriate Requisition of the Agency and upon request for <br />funds by the escrow company, all as required by the Mortgage Loan Purchase <br />Agreement. <br /> <br />38 <br />